What drives the volatility in Indian stock market ?
The **Indian stock market** is known for its **volatility**, which refers to the frequent and sometimes sharp fluctuations in stock prices. This volatility is driven by a combination of **domestic** and **global factors**. Here’s a detailed breakdown of the key drivers: --- ### 1. **Global Factors** - **Global Economic Trends**: - Economic conditions in major economies like the US, Europe, and China impact the Indian market. For example, a slowdown in the US or China can reduce demand for Indian exports, affecting sectors like IT and pharmaceuticals. - **Geopolitical Events**: - Events like wars, trade tensions, or political instability in other countries can create uncertainty, leading to market volatility. For instance, the Russia-Ukraine conflict caused global market turmoil, including in India. - **Foreign Institutional Investors (FIIs)**: - FIIs play a significant role in the Indian m...